4 Ways Of Finding Society Donors

Nonprofits will gladly accept a donation of any size but when it comes down to it receiving a gift from higher-priced donors are much more helpful in the fundraising enterprise.

The most sought after gifts come from what are called Society Donors. These individuals tend to make the biggest donations and, as such, are the biggest catch for any fundraiser. During the 2013 Blackbaud Conference for Nonprofits, George Durney and Page Bullington of Marquette University discussed the best ways to secure a gift from a Society Donor. The process should involve a careful, dedicated program of cultivation.

Based on surveys taken at 12 institutions of higher learning over a 20-year period, Durney and Bullington offered the following reminders when going after Society Donors:

• Have patience. On average, it took 13.2 years for a donor to make their first $1,000 gift.
• Keep donors engaged and giving. Those who gave $1,000 in fiscal year 2009 gave in about 73 percent of the years they were on file.
• Have a cultivation plan. Some 57 percent of donors made a first gift of less than $100.
• Establish donor potential. The higher the first gift, the quicker they became a higher-level donor/

Mercersburg Academy Alum Donates $100 Million

In what was the second-largest gift ever given to an independent school in the U.S., Mercersburg Academy announced Thursday that it had received a gift of nearly $100 million from alumna Deborah J. Simon and her foundation.

The donation, which Simon said was made out of gratitude for her two years at the Mercersburg, Pa.-based institution, is the leading gift so far in the school's "Daring to Lead" $300 million capital campaign. When combined with recent campaign gifts that include support for a new student center, Simon and the Deborah Joy Simon Foundation have pledged nearly $107 million to Mercersburg Academy.

"We are thrilled beyond words for this transformational gift and the confidence that Deborah and her foundation have placed in us," said Douglas Hale, head of school. "Because of their vision and generosity, young men and women from all walks of life will have access to an extraordinary education that will allow them to realize their potential."

Simon, who is a member of the Mercersburg Academy Board of Regents, praised Hale for his "vision" for the school. "This is a place where faculty are encouraged to experiment with new ideas and technologies to engage students more fully in their education," she said.

According to a press release announcing the donation, Simon's gift will help Mercersburg Academy achieve its goal of ensuring its education is affordable for its students. Currently, 32 percent of students receive need-based financial aid, and 49 percent receive a combination of merit and need-based scholarships toward tuition. The Academy accepts students in grades 9-12.

Previous gifts to U.S. independent schools that equaled or surpassed Simon's gift include a $128 million donation to the Newtown, Pa.-based George School in 2007 and $100 million to the Hightstown, N.J.-based Peddie School in 1993. The previous high donation to the Mercersburg Academy came in 2000 by alumnus and former President of the Board of Regents H.F. "Gerry" Lenfest, who donated $35 million.

Major Donor Traits

What makes a major donor? The obvious answer is a substantial amount of money, but these individuals also have different belief systems. Fundraisers must learn to understand these beliefs if they are to be successful at cultivating these types of donors.

As Kent E. Dove, Alan M. Spears, and Thomas W. Herbert wrote in their book “Conducting a Successful Major Gifts & Planned Giving Program,” major gifts aren't just going to appear to an organization; they have to be cultivated from major donors by fundraisers. In order to achieve the proper success, it's important to understand what makes these individuals tick.

Dove, Spears, and Herbert explained that while major donors have many characteristics, understanding the following three will lead to the best results in procuring a major gift:

• Major donors typically have strong values and deep beliefs. They believe in people and have great respect for knowledge.
• They know someone in or something about the nonprofit organization they are supporting.
• They view giving as an investment, and through such investments they desire to solve a problem or issue and to express themselves (to attain self-actualization).

First Year Fundraising Campaign Goals

Fundraising campaigns are rarely completed in just a single year. The nature of a long-term campaign means the number the organization wants to reach will be quite high, meaning the time-frame can be as long as five years. All of the years are important in a campaign but, as M. Jane Williams explained, the first year carries the most weight.

Williams wrote in her book, "Big Gifts," that the first year of a fundraising campaign can determine the overall success of the project. A rousing first year will boost the morale of your fundraisers, whereas a lackluster performance will cause concern. To ensure you get off to a good start, Williams recommended making use of schedules. These will help organize your campaign so you know by when you need to accomplish certain goals (i.e., X amount of dollars should have been raised by X date).

For the first year of your campaign, Russell V. Kohr wrote in the “Handbook of Institutional Advancement” that the following goals should be accomplished:

• Complete the first draft of the long-range plan;
• Share plan with trustees and selected potential benefactors;
• Revise plan as necessary;
• Trustees approve plan and campaign goal;
• Development office prepares statement of gift opportunities;
• Development office drafts case statement that is then shared with key people in the organization, trustees, and selected friends;
• Survey various constituencies intensively;
• Research prospective donors of major gifts;
• Begin solicitation of major gift, corporate, and foundation prospects;
• Increase annual giving solicitation;
• A group -- such as the president, chairman of the board of trustees, and the chairman of the trustee committee on development -- enlists a national campaign chairman and members of the major gifts committees;
• Role of the president and other administrative officials in the campaign is determined; and,
• Begin solicitation of trustees.

Major Gift Campaigns: Your First Year

With rare exceptions, major gift campaigns can't be completed in a single year and, in fact, they can sometimes take as long as a decade. That's why it is important to create a schedule of goals when planning your campaign.

Whatever kind of schedule you create should include a series of target dates in which you are going to reach certain benchmarks. Russel V. Kohr wrote in the "Handbook of Institutional Advancement" that the first year of your campaign is perhaps the most important; it is during this time period when your efforts can really take off or sink.

Kohr wrote that organizations should aim for the following 13 goals during the first year of their major gift campaigns:

• Complete the first draft of the long-range plan;
• Share plan with trustees and selected potential benefactors;
• Revise plan as necessary;
• Trustees approve plan and campaign goal;
• Development office prepares statement of gift opportunities;
• Development office drafts case statement that is then shared with key people in the organization, trustees, and selected friends;
• Survey various constituencies intensively;
• Research prospective donors of major gifts;
• Begin solicitation of major gift, corporate, and foundation prospects;
• Increase annual giving solicitation;
• A group -- such as the president, chairman of the board of trustees, and the chairman of the trustee committee on development -- enlists a national campaign chairman and members of the major gifts committees;
• Role of the president and other administrative officials in the campaign is determined; and,
• Begin solicitation of trustees.

Northeastern Receives Record Donation

Two Northeastern University graduates who initially dropped out of the school teamed up to give their alma mater a record donation of $60 million.

Richard D’Amore and Alan McKim both dropped out of Northeastern as undergraduates but were encouraged to return by Professor Daniel McCarthy. The two former students’ $60-million donation is now the largest gift to the Boston school since a $20-million donation in 2006. As a result of the gift, Northeastern’s College of Business and Administration will become the D’Amore-McKim School of Business.

Northeastern plans to use the $60 million to launch new programs, attract top faculty, increase financial aid to students, subsidize cooperative education programs, and offer more opportunities for students to study and work abroad. The D’Amore-McKim School of Business is the first college or school to be named at Northeastern, and the $60-million gift is the fourth largest to name a business school in the United States.

A 1976 graduate, D’Amore had previously donated $5 million to the school in 2009 to support innovation and entrepreneurship. McKim, a 1988 graduate and founder and CEO of Clean Harbors, met D’Amore when the two teamed up to endow a professorship currently held by McCarthy. D’Amore is co-founder and general partner at Waltham, Mass.-based North Bridge Venture Partners.

“Once in a generation, history is made in the life of a university. This is one of those moments,” said Northeastern President Joseph Aoun in a statement.

“Northeastern has had a huge impact on me — both personally and professionally,” D’Amore said in a press release. “I hope that what Alan and I are doing will inspire others to do the same.”

14 Tips For A Successful Major Gift Solicitation

There's a lot to consider when soliciting prospects for major gifts. You can't simply walk up to a donor and ask for one and expect a positive result.

In his "Major Gifts Solicitation Guide," Alexander Macnab, president of Chicago-based Alexander Macnab & Co., offers 14 tips to help fundraisers become more successful in their attempts to obtain major gifts for their organization:

• Solicitors must make their own gift or pledge first.
• Solicitors must know the story and the needs of the organization and of the campaign.
• Solicitors must know as much as possible about their prospects.
• Solicitation assignments must be made selectively, on a peer basis or with "name and/or title impact" in mind.
• Solicitation of Development Committee, Board of Directors, and all leadership gift prospects must take place in the context of a personal visit.
• Have a dollar figure in mind when conducting a solicitation.
• Solicitors should be able to relate the interests of prospects to particular gift opportunities to establish the campaign initiatives.
• When calling with more than one person, solicitors should decide who will say what to whom and in what order.
• Solicitors should sell the objectives of the project, not the tax advantages.
• Solicitors should allow the prospect to answer questions, voice doubts, and respond to the proposal. Listen and respond to the individual's point of view. Talk 20 percent of the time and listen 80 percent.
• Never argue. Criticisms and objections are possible signs of interest.
• Solicitors should stress their own commitment, financial and in terms of use, as a sign of possibility for further donor involvement.
• Follow up -- a "thank you" note, an answer to a question, confirmation of the next meeting date, or whatever is appropriate -- should be conducted immediately following a call.
• Solicitors should debrief the development office as soon as possible following the call.

If you keep all of these points in mind when conducting a major gift solicitation, you should find the process a lot less stressful.

Alec Baldwin Donates $1M To NY Philharmonic

Actor Alec Baldwin has donated $1 million to the New York Philharmonic in honor of the organization's departing president, Zarin Meheta, who is stepping down after 12 years.

Baldwin, who joined the Philharmonic's board in March 2011, gave the money from proceeds he earned from his commercials with Capital One Bank, according to an article in Crain's New York Business.

"I have loved classical music all of my life," Baldwin said in a statement. "But Zarin Mehta made my dream of becoming part of the world of classical music come true."

In addition to being a member of the board, the "30 Rock" actor has hosted the organization's weekly radio show since 2009. In a statement, Meheta said that Baldwin's "role as our radio host has brought us many new listeners, as well as much appreciated attention. And his active roles as board member, gala benefit chairman, and high-profile and magnanimous donor have benefited us and our field."

Meheta, who will leave his post at the end of the Philharmonic's 2011-2012 season, will be replaced by incoming executive director Matthew VanBesien.

This isn't the only big influx of money going to an arts institution. Crain's also reported that the New York City Council approved a bill last week that secured $156.4 million in funding for cultural and art institutions in the city's fiscal year 2013 budget. It represents an increase of $3.6 million from last year.

You can read the full report on Baldwin's donation in Crain's.

Major Gifts: 5 Tips To Boost Your Success

The strict nonprofit manager's first instinct when staff doesn't meet major gift goals is to fire them. That's not necessarily the right move, according to fundraising expert Laura Fredricks.

In her book "The Ask: How To Ask Anyone for Any Amount for Any Purpose," Fredricks wrote that there are other steps you can take to boost the results of your major gifts campaigns. Rather than give your hard-working staff the ax, she suggested implementing the following five tips:

• Time Management: They say that time is money, so don't waste it with too many meetings. Try to limit the ones you have to only the essentials. Fredricks also cautions against multitasking. While it sounds good in theory, it is really better to focus on one task at a time.
• Make Clear and Measurable Goals: Give your staff goals they can actually obtain. Do this by letting them know exactly what you expect and do reviews every few months to check on their progress. Remember that goals don't just have to be measured in dollar signs. You can easily measure success in face-to-face donor contact, meetings, and special event attendance.
• Be Cross-Functional: Is one of your key fundraisers out of the office? Make sure to teach members of your staff their skills so they can perform their job if needed. Something unexpected always happens, so you need people who can pick up the slack.
• Risk Management: You don't want to be pessimistic, but you should always have a plan in case the worst happens.Think about events that could hinder your operations (i.e., law changes, natural disasters) and come up with ways to manage those risks.
• Communicate and Demonstrate Your Staff's Worth: You should treat your staff like a team. All of the players are needed for your program to be a success -- and you should make sure they know that. There is no better way to boost employee morale than by showing that their opinions matter.

Webinar: Making Major Gift Fundraising Productive & Reliable

UPDATE: With the webinar coming in just a couple of days, I decided to bump this post.

***

Hopefully you have all registered for our upcoming free webinar on cloud computing this Wednesday. The fun doesn't stop there -- we have another one scheduled for the beginning of June on a subject that should interest all fundraisers: Major gifts.

Join The NonProfit Times, Convio, and the American Marketing Association (AMA) for "Moves Management Made Easy: Making Major Gift Fundraising Productive and Reliable." This webinar will discuss how having a solid moves management process can raise your team's productivity, eliminate missed opportunities due to staff turnover, and make your major gift fundraising results more reliable.

Contributing to the hour long discussion will be Jennifer Darrouzet, Senior Product Marketing Manager at Convio, and Rachel Muir, Client Strategy Executive at Convio & Founder of Girlstart. They will explain the following topics related to moves management:

• What moves management is and isn't.
• How to get started and make your first move.
• Ways to build plans with tried-and-true methods.
• The "triggers" that tell you it's time for a prospect to move to the next cultivation stage.

This free webinar begins on June 1 at 1:00 PM EST, and will feature introductions by Paul Clolery, our editor-in-chief. Register today to participate in what is sure to be an insightful hour of discussion.

When Non-Cash Gifts Are Worth Cash

When you give a friend money as a birthday gift it's appreciated, but there's always the thought that you could have been a little more creative. That's not really the case with nonprofits; money is one of the best gifts you can give.

But that doesn't mean it's the only gift.

Non-cash gifts, such as computer equipment or office supplies, can be very useful for nonprofits. Yet even though these items are not money, they still have cash value in the eyes of the Internal Revenue Service (IRS). IF that value is great enough, an organization might be required to substantiate the gift to the IRS.

In their book “Conducting a Successful Major Gifts and Planned Giving Program,” Kent E. Dove, Alan M. Spears, and Thomas W. Herbert explained that the need to file federal form 8283 also depends on the status of the taxpayer. They explained four instances that qualify, as well as which part of the form must be completed:

• Non-cash gifts valued at $500 or less. The donor only has to complete federal Form 8283 for this type of gift if the person has made a series of gifts in a given year, each of which is valued at $500 or less but with a total value exceeding $500;
• Non-cash gifts valued between $501 and $5,000. Gifts in this range must be reported on Part A of IRS Form 8283, which is then attached to the donor’s federal income tax return;
• Non-cash gifts valued at more than $5,000. If the amount claimed as a charitable income tax deduction is in excess of this amount, the IRS requires the donor to complete Part B of Form 8283; and,
• Gifts of non-publicly traded stock. If the donor makes this type of gift, Part B of Form 8283 must be completed. This is true regardless of the value of the stock. A qualified appraisal is required if the value of the stock exceeds $10,000.

So remember: Just because your organization is getting a donation of something other than cash doesn't mean that there is no accounting work to be done.

National Museum Of Natural History Gets Major Donation

David H. Koch, executive vice president of Koch Industries, has made his mark on National Museum of Natural History by donating $35 million to the Washington, D.C.-based museum.

The major gift, which was announced by the Smithsonian Institute last Thursday, will be used to build a new dinosaur hall, according to a report in The Washington Post. It is the largest single donation the museum has ever received, and the fifth largest in Smithsonian history.

Koch, who might be best known for his support of conservative causes, has been a member of the museum's advisory board for the past 15 years. He told The Post that he made the donation because he believes the institution's current dinosaur hall is "obsolete." Many of the specimens included in the current dinosaur exhibit have been there since the museum first opened 100 years ago.

This is certainly not Koch's first experience with philanthropy related to dinosaur exhibits. He donated $20 million to the dinosaur hall in New York City's American Museum of Natural History in 2006. He also gave $100 million to the renovation project for the State Theater of New York at Lincoln Center.

The National Museum of Natural History's current dinosaur exhibit will close in 2014, with the renovated hall scheduled for completion in 2019. The total cost of the work is estimated at $45 million.

You can read more about this story in The Washington Post.

Garth Brooks Gets His Donation Back

An Oklahoma hospital has been ordered to pay $1 million to country singer Garth Brooks after failing to build a women's health center in honor of his late mother.

The details of the case were laid out in a story that originally appeared in the previous edition of NPT Weekly.  Brooks donated $500,000 to Yukon, Okla.-based Integris Canadian Valley Region Hospital with the understanding that the gift would help fund a women's health center named after his mother, Colleen Brooks, who died in 1999.  He filed a suit against the hospital after the center had been built without his mother's name attached.  The jury ruled in favor of Brooks on Jan. 24, awarding him his original donation plus an additional $500,000 in punitive damages.  A spokesperson for Integris said that the hospital does not expect to have to cut any services or programs in light of the settlement, as the money will not come from their operating budget.

This case shows the importance of the donor having a written agreement with the nonprofit when making a major gift.  Jeffrey Tenenbaum, a nonprofit attorney at Venable LLP in Washington, D.C., told NPT that it's uncommon to have only a verbal agreement with the client.  Said Tenenbaum: “This case is the perfect example of why verbal commitments do not work out.”

Tenenbaum goes on to say that the written agreement should lay out the dollar amount that will be paid, whether or not the contract is enforceable, and provide contingencies if the original purpose of the contribution cannot be fulfilled.  While the case ultimately worked out in Brooks' favor, these steps are highly advisable to prevent legal issues like this from happening.

You can read the full story in The NonProfit Times.

Ideas For Your Major Gift Ask

Every nonprofit fundraiser's dream is to have a conversation with a major donor that goes so well, that the person writes you a check immediately.  Too bad it's rarely that easy.

Yes, the major gift ask is one of those things that gets even experienced fundraisers a little antsy.  It's all too easy for nerves to lead you to a critical error that can ruin the whole process.  And then there's the second guessing.  Did you ask too much?  Too little?  You'll drive yourself crazy if you allow these thoughts to take control.  The reality is it's totally natural to have a little fear before prospecting for a major gift.

According to Rachel Muir, client strategy executive at Austin, Texas-based Convio, how you handle that fear will determine your success.  She let The NonProfit Times in on some tips on how to better prepare for major gift asks:

• Make sure the prospect in question has been properly cultivated before asking for a major commitment.  Think of it this way: You could ask someone to marry you on the first date, but it would be creepy and desperate.  The same applies with your donors.  You should be stewarding your donors with seven unique touches annually: a visit, a tour, prompt thank you’s, personal stories about your successes, newsletter, annual report, personal calls, etc.  It's all about the courtship!
• Find out everything you can about your prospects.  What are their interests?  Where did they go to school?  What are their giving patterns?
• Re-connect with your organization's mission.  Why are you asking for money in the first place?  Having a strong passion and commitment for your cause is a major selling point for donors.
• Consider doing your asks in pairs.  Two is better than one, right?
• When it's time to make the ask, make sure it's in a setting where there will be minimal interruptions.  You will want 20 to 30 minutes of the prospect's undivided attention.  Suggestions for meetings spots could be their office or somewhere at your organization.  Whatever you do, do not ask at a restaurant.  This will guarantee you multiple interruptions.
• Describe the impact of your organization through the use of personal anecdotes.  Focus on the benefit, impact, and vision.
• Do not use acronyms.
• Here's the most important thing to remember: After you make your ask, be silent.  Give the prospect time to think.  Continuing to talk after making your ask is a great way to talk yourself out of a gift.

What happens next is hard to say.  They'll either say yes, no, or ask for more time to think.  If that's the case, make sure you make a return appointment, and thank them for their time.  If they say yes, make sure to thank them for their generosity.  If they say no, ask if it is the amount of the gift or the timing. You can offer to stretch their gift out over time. If that doesn’t work ask them if they will renew at their current gift level.

We hope you have found these tips useful for your organization's prospecting efforts.  Head to The NonProfit Times for more articles like this.

Jacksonville Jaguars Owners Stay, To Relief Of Charities

When does the sale of a football team rock the nonprofit world?  When the owners of said football team are major philanthropic figures in the community.

If you are a fan of the NFL, you are probably aware that the Jacksonville Jaguars sold the franchise yesterday.  You might not be as aware that the owners of the team, Wayne and Delores Barr Weaver, are the most visible and active philanthropists in Jacksonville.  In an article published yesterday in The Florida Times-Union, nonprofits reacted with relief that, despite the sale, the Weavers will be staying in Jacksonville.

Words like "Thank God" were thrown around by various nonprofit executives when The Florida Times-Union approached them with the news.  And it's not just because of the money they donated ($55 million to local causes since the mid-90's) that has Florida charities thankful; the Weavers changed philanthropy in the city of Jacksonville.  The couple donated $27 million to The Community Foundation in 2007, most of which went to agencies in need, but $11 million of it was used to create endowments for 22 local nonprofits.  Until the Weaver's gift, few Jacksonville nonprofits were endowed.

It's because of stories like that why nonprofits were excited to learn the Weavers will continue to be active in Jacksonville philanthropy through the Weaver Family Foundation.  Time will tell if the new ownership of the Jaguars will be able to turn the team back into contenders.  But with all this uncertainty, at least nonprofits know that their favorite football owners are staying where they are.

Make sure to read the full article on the Weavers at The Florida Times-Union.

Management Tip: 3 Ideas For Transformative Major Gifts

It's the constant question for all nonprofits: How do I get a donor to give a major gift?  They are the engine for nonprofits, yet it can be intimidating to ask donors to give more and more money.  There has to be an easier way, right? 

At the 2011 Bridge Conference, Nina Fascione, executive director for Bat Conservation International, and Martha H. Schumacher, president of Hazen, Inc, explained what nonprofits can do to improve their success with major gifts.  We covered these suggestions in our most recent management tip:

* Cultivate -- Nonprofits can cultivate major donors through education and outreach activities. By demonstrating the value of a philanthropic investment and by highlighting value-added benefits, donors can be put into mid-level donor track.


* Upgrade Mid-Level Donors -- Once you’ve added mid-level donors to your organization, it is important to try to upgrade them. Show them outcome measurements and demonstrate mission impact, while giving monthly giving options to provide a multitude of giving options.


* Introduce Your New CEO to Your Major Donors -- After you’ve upgraded your mid-level donors, make them feel like they are playing an active role in the organization. With active listening and including transparency, your donors will feel more attached to the organization.


And remember the Three E’s: Enthusiasm, Energy, Economic Accountability.

As you can see, cultivating relationships with donors is a major part of these suggestions.  You have to start at the ground level before you start seeing the results you want.  There may be no quick fix to start seeing those major gifts flow in, but these tips might be the next best thing.

More On The Erie Gives Day Fundraiser

Remember the Erie Gives Day fundraiser I wrote about last week?  Looks like it was an even bigger success than originally thought.

I wrote last week that the initial tally for the event was $690,513.  According to GoErie.com, the final number was $771,030.  This money was raised from about 3,000 individual donors who gave over 4,900 gifts.  Here are some more notes from the fundraiser that were released by the Erie Community Foundation (ECF):

• The average gift was $233.
• The money raised included $100,000 added through a $75,000 matching donation from ECF and $25,000 from GE Transportation via a corporate match.
• Jefferson Educational Society received the most money of all the nonprofits that participated in Erie Gives Day: $618,618.  The Foundation for Free Enterprise came in second with $63,316.
• The Kanzius Foundation got the most number of donations with 247.

All participating organizations will receive their donations on Aug. 12 in a presentation at the Erie Zoo.  When you get a chance, you should read the full article at GoErie.com.  Besides all the statistics in the article, it's pretty cool to read the reactions of the people who work at the nonprofits that got the donations.

DC School Sports Saved By Anonymous Donation

Note: This is a summary of a story from an outside news organization.  Follow the links in the post to read the full article.

Sports in Washington D.C.'s public schools had been going through some tough times.  Faced with a 28% budget cut, they were suddenly saved by an anonymous $1.5-million donation.  According to a story in The Washington Examiner, the money went to the D.C. Public Education Fund, a nonprofit dedicated to finding money for public schools in the District.  This new influx of cash will allow the school to purchase new athletic equipment and add sports programs for girls.

The Examiner story states that school officials became aware of the donation during the fiscal year, so some parents and community members are frustrated that they weren't made aware of the donation after spending countless hours fundraising.  The D.C. Public Education Fund explained that they don't publicize a gift when the donor wishes to remain anonymous.  Even though the donation is sure to boost sports in D.C.'s public schools, some parents are still not sure whether they will cancel their fundraising plans.  They are skeptical of the secretive nature of the donation, and want to know the plans are for next year's budget.

If you are interested in reading the rest of this story, visit the website of The Washington Examiner.